EXO U signs OEM Agreement Conditional on Successful Pilot In Ethiopia
MONTREAL, Feb. 18, 2016 /CNW Telbec/ - EXO U Inc. ("EXO U") (TSXV: EXO) announces that it has entered into a license agreement (the "License Agreement") with Yazmi USA, LLC ("Yazmi"), a company located in Silver Spring, Maryland, USA, to distribute a fully customized version of Ormi, its mobile device teaching platform for schools. The non-exclusive License Agreement establishes terms for distribution with Yazmi's satellite Internet solution for schools in Ethiopia and sets out three (3) phases of partnership which include a pilot phase, a development phase and a delivery phase. Each successive phase is dependent on the successful completion of the previous phase. Yazmi can terminate the agreement prior to March 18, 2016 during the Pilot Phase (as defined below).
- Pilot Phase:
The pilot phase, which runs until March 18, 2016, shall be dedicated to testing the effectiveness of the EXO U software on the current structure and functionality of the Yazmi OdysseyTM Tablets over a standard Internet environment (the "Pilot Phase"). The successful completion of the Pilot Phase is a condition to the continuation of the License Agreement. There is no certainty that the Pilot Phase will be successful and that the parties will proceed to the Development Phase.
- Development Phase:
The development phase, which runs from March 19, 2016 to July 1, 2016, shall be devoted to fine-tuning the personalized EXO U software to ensure that it meets the specific and agreed development requirements of Yazmi (the "Development Phase"). During this Development Phase, demonstrations and pilots may be facilitated as needed on the EXO U software. The Development Phase is subject to modifications following the completion of the Pilot Phase. In connection with the Development Phase, EXO U shall receive development fees payable on or about March 31, 2016 based on the successful completion of the Pilot Phase, as well as on the Delivery Date (as defined below).
- Delivery Phase:
The delivery of the completed personalized EXO U software is contemplated to begin on or about August 1, 2016 (the "Delivery Date"). Following the Delivery Date, the License Agreement contemplates minimum delivery amounts of devices per year, for which EXO U shall receive license fees during the term of the License Agreement.
The pilot schools identified in the agreement are located in Ethiopia and are to be managed by Yazmi and EXO U jointly. Provided the Pilot Phase is successful, the development and fulfillment phases of the License Agreement will immediately follow. As at the signing of the License Agreement, EXO U has not yet tested Yazmi's technology for the pilot program, including the Internet connectivity and Yazmi's OdysseyTM Tablets.
About EXO U
EXO U's shares trade on the TSX Venture Exchange under the ticker symbol EXO. EXO U develops an innovative software platform that enables businesses and educational institutions to securely mobilize and manage their mobile workforce and students by delivering engaging experiences spanning desktop and mobile applications. At the core of EXO U's platform is the smart and agnostic EXO engine that unifies multiple software platforms, allowing devices to interact and communicate seamlessly together. For more information, visit EXOU.com or follow us on Twitter @exo_u.
Disclaimer in Regards to Forward-Looking Statements
Certain statements included herein that are not historical facts, including but not limited to statements with respect to management's expectations or estimates of EXO U's future performance or future events, including regarding EXO U's successful completion of the development phases of the License Agreement, constitute "forward-looking statements" within the meaning of applicable securities laws. Forward-looking statements are necessarily based upon a number of estimates and assumptions that, while considered reasonable by management at this time, are inherently subject to significant business, economic, regulator and competitive uncertainties and contingencies that could cause actual results or events to differ materially from those expressed or implied in such statements. Readers are cautioned not to place undue reliance on these forward-looking statements. EXO U disclaims any intention and assumes no obligation to update or revise any forward-looking statements, except as required by applicable securities laws. For additional information with respect to certain of these and other assumptions and risk factors, please refer to EXO U's management's discussion and analysis for the year ended March 31, 2015, available under the Company's profile on SEDAR at www.sedar.com.
Neither the TSX Venture Exchange nor its Regulation Services Provider (as that term is defined in the policies of the TSX Venture Exchange) accepts responsibility for the adequacy or accuracy of this release.
SOURCE EXO U Inc
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